San Francisco Is Investigating Whether Uber And Lyft Are Public Nuisances

A Lyft car drives along Powell Street on June 12, 2014 in San Francisco, California. The California Public Utilities Commission has cracked down on ride sharing companies like Lyft, Uber and Sidecar by warning that they could lose their ability to operate within the state if they are caught dropping off or picking up passengers at airports in California. (Credit: Justin Sullivan/Getty Images)

Adding to the ongoing pile-up of ride-hail legal woes, officials in San Francisco are now investigating whether the industry's two biggest fleets have brought trouble on their hometown.

San Francisco has issued subpoenas covering "a broad scope of records on driving and business practices" to Uber Technologies Inc. and Lyft Inc. as part of an investigation into the local impact of the Silicon Valley-grown startups, Reuters reported Monday. According to Reuters, the action is specifically aimed to help city officials determine whether the companies have amounted to a public nuisance in the Bay Area's urban and financial center, where both firms have faced legal battles over drivers' routes, registration, and other practices.

City Attorney Dennis Herrera told Reuters he hoped to acquire the four years' worth of records on the Uber and Lyft's nearly 45,000 drivers to investigate whether the companies have created hazardous conditions on city roads, and whether the platforms offer sufficient service for low-income neighborhoods and disabled persons. According to the subpoenas, such records would include data on driver's hours and miles logged, their traffic infractions and zip codes visited, and driver incentives used by the companies.

"No one disputes the convenience of the ride-hailing industry, but that convenience evaporates when you're stuck in traffic behind a double-parked Uber or Lyft, or when you can't get a ride because the vehicle isn't accessible to someone with a disability or because the algorithm disfavors the neighborhood where you live," Herrera said.

According to Reuters, Herrera also requested copies of data the companies have submitted to the California Public Utilities Commission, which regulates ride-services in the state and amasses much of the kinds of the data that San Francisco hopes to review.

A spokesperson for Uber commented by email, "We’re more than happy to work with the City to address congestion, but it should be a comprehensive solution including construction, the city’s population increase, and the rise of online delivery services ... Also, given the fact that the city posts home addresses of drivers on its public website, we have serious concerns about providing personal data that the City refuses to protect."

In an emailed statement, a spokesperson for Lyft said the company is "currently reviewing the subpoena, [but] has always been focused on improving transportation access for people across all cities in which we operate." The company also said that close to 30% of Lyft's San Francisco rides "take place in underserved neighborhoods," and that 20% begin or end at public transit hub. They continued, "We also have a track record of working collaboratively with policymakers who regulate us, including the CPUC here in California, to ensure that our service complements existing transportation options."

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